I have finished implementing the features for release 1.12.  I wasn't able to get everything in this release.  I'll have to add in the rest of it in the next release.  Here is what will be in 1.12:

1. Bugfixes for talents to match the information in the guide.
2. Reduced mana for magic attacks.  Casters should be able to rely mainly on magic now.
3. Changed loot system to be primarily currency-based.  You have to pick up gold that is dropped, but it is a quick pickup so it doesn't ask before it does it.  I may do this for potions too since potions are still fairly common.  (Let me know if you would like a quick pickup for potions).
4. Added keys and locked doors.  Old save games should not get stuck between series of locked doors.  Though, you may want to go buy a key from Zebo for later levels.  Beware, overly strong and not very agile characters may break their keys on use fairly frequently.  That's just the issue with being beefy and clumsy at the same time. :)
5. Added random level bosses to randomly generated levels.  Beware of the random bosses on the lower level.  Some of the zombie bosses may pass the level threshold for a puke attack which can be quite devastating.  Might want to keep your distance or not hang around them too long, because the effects stack.

I just need to do some play testing before I upload it to Android Marketplace to ensure there are no glaring flaws and I can play through and beat the game.

The release after this one will likely contain the following features:

1. Add boulders to caverns.
2. Add pickaxe to dig through walls.
3. Add spike traps.
4. Artifacts (Weapons, Armor, Items, Runes, Etc).
5. Improvements to map and mini map.

I think that the mana costs still need some tweaking.  Here's my character:
Level 11
HP: 168
MP: 159
STR: 10
END: 35
AGI: 35
MAG: 40
Mana Regen: 4 points
Mana Potion: 2 points (I'm pretty sure it's 2 points, but I might be mis-remembering)
Miracle: 1 point
Ice Bolt (not sure about the name: it's the one that shoots a single bolt of ice): 1 point
Shockwave? (totally not sure about the name: it's the electrical area-effect that supposedly causes stun): 1 point
Health Regen: 2 points (I'm pretty sure it's 2 points, but I might be mis-remembering)

I had taken this character all of the way to the door in level 14, but I started a new game after this latest update came out so that I could see how the mana expenditure went. The giant rats in the initial area showed that this mage is still too dependent on physical attacks and mana potions. It's definitely better than it used to be, but it still needs to change more. I tried using just ice bolt and my staff, but I ran out of mana before even the first rat was dead, so I used a mana potion and got about a third of my mana back, but that ran out too, so I had to finish the job mostly with the staff. My mana regen was fast enough that I could launch another ice bolt after every two or three attacks with the staff, but the point is that I should be using ice bolt more than the staff, not the other way around. If I was up against a more dangerous enemy I would want to kite, but that would preclude using the staff and I would probably need way too many mana potions to get the job done.

You should put more points into Ice Bolt. Right now Ice Bolt for you is doing:

40 damage + 10% chance to slow

If you had it at lvl 4 it would do:

100 damage + 40% chance to slow

Increasing skill level in spells will not increase their mana cost.  Mana cost is derived from the player's level.

Putting more points in to the magic stat or using equipment that increases the magic stat will increase damage too. Your character isn't currently built to do damage.

I'll try building a new mage from 1st level, but I want to explain the decisions that drove this character build:

I started out dumping all of my stat points into Magic and Agility, at a 2:1 ratio in favor of magic. I was getting one-hit-killed left and right, so I kept adding points to Endurance until it stopped. I found that splitting my points equally between Magic, Agility, and Endurance made for a good balance. With the lowered mana costs, I won't have as much need to enter into melee range to use my staff, so a newly-built character might fare better with more points in Magic and less in Endurance.

I also started out picking equipment that boosted my magic stat, but then the ghosts and undead mages were killing me way too easily so I had to go with all equipment with the shielding trait. If you re-balance this, I could probably switch some of that equipment back to boosting magic.

I always intended to add at least one more point to Ice Bolt, but there were always reasons to put those points into other skills instead:

Mana Regen: When you're always short of mana, this is the obvious place to put points. Even with a new character, I would still probably max this out before maxing any other skills.

Mana Potion: Even with Mana Regen maxed, I still found myself needing to use lots of potions, but I wasn't getting much out of them at later levels, so I put some points into this to get more bang for my buck.

Health Regen: I was going through way too many health potions (I was even needing to buy them regularly at later levels), so I put some points into this to help compensate. I would still put a single point into Health Regen the first time I level up, for any character type, but for a mage I would prefer to stop after that.

Miracle: This was another skill I took early on because I was frequently getting status effects, but I'm honestly dubious about how useful it really is. I just can't tell how badly the various status effects hurt me, and I can't tell if they're going away because of Miracle or if they're going away on their own.

Shockwave (or whatever it's called): This actually leads me to my most important point--there are a lot of magic skills to choose from, and I'd want any mage character I build to have access to many of them, putting one or two points into lots of skills rather than choosing two or three to max out. Based on your advice to put more points into Ice Bolt, however, it sounds like the only viable build for a mage is to specialize in a small number of spells rather than generalize in many.

I still think that a character with Mana Regen maxed out should be able to cast basic offensive spells like Ice Bolt non-stop without depleting mana, just as an archer can fire off arrows non-stop. In other words, if I fire off Ice Bolt spells as fast as I can, then the rate at which I consume mana should be less than or equal to the rate at which mana replenishes with four points in Mana Regen. This way, even if I have only one point in Ice Bolt, I can eventually kill anything using just Ice Bolt; it might take me twice as long as a character who has Ice Bolt maxed out, but I won't have to drink several mana potions to get there.

It's been a busy couple of months, so it took me a lot longer to build and play this character than I had anticipated, but I just finished killing the big A, so I'll now report on my experiences.

Before I talk about how things went with the new character build, I have one unrelated comment: at one point, there was an update that gave all of the end-of-stage bosses custom sprites. It was really cool. Unfortunately, some later update undid that, so that only the level 14 boss had a custom sprite and the others just looked like a standard orc, a standard skeleton, and a standard undead mage, respectively. Was this a deliberate decision, or is this a bug that needs to be fixed?

The Bottom Line Up-Front (BLUF):
Magic users just can't compare to archers, even with the changes. The game was easier as an archer, even a sub-optimally built archer, than it was with a magic user, all of the way from level 1 to level 14.

As an archer, I can fire off arrows indefinitely, never having to worry about my mana; with multi-shot, I can chew through enemies quickly, and penetration just makes it even better. Because I don't have to worry about mana as an archer, I never have to close to melee range to finish a fight, so I don't need very many health potions, either.

As a magic user, on the other hand, I always have to ration my mana, and that means I almost always have to close to melee range to finish a fight, and that means I also have to use a lot of health potions. Towards the very end it gets to the point where I can kill one or two enemies without needing mana potions, but only through a combination of spells and melee. I can only kill the very weakest enemies without resorting to melee combat. However, the trend was definitely in the right direction and it might be that around character level 15 or so, a magic user would exceed an archer in effectiveness.

However, that brings me to the other big problem with magic users: they are very late bloomers. It takes at least two level-ups to get to the point where you can even begin to use magic as part of your normal combat routine: one level-up to get a spell, and another level-up to take a level in mana regen so that you can actually use that spell regularly without blowing a fortune on potions. In short, you can't even begin to act like a magic-user until character level 3 at the earliest, and it takes even longer to get to the point where you are doing more damage by magic than by melee. Both of these problems could be solved by making two changes:

1: Have mana regenerate for all characters, beginning at 1st level. Taking levels in mana regeneration would speed up the rate of mana regen, but even with no levels you would get some mana regen.

2: Let all characters select an ability/spell at character creation, rather than waiting to get the first one at 2nd level.

In combination, these two changes would make it possible to play as an effective spellcaster from the very beginning.